Chapter 7 Part 4 Flashcards
Which benefit is based on person’s primary ins amount
Long term care benefit
Social security disability befit
Accidental death benefit
Social security disability benefit
Age 27 and meets definition of total disability
Worki credits?
12 credits
20 credits
6 credits
40 credits
12 credits between 21 and 27
Which would social security disability benefits NOT cease
Son gets part time job to help support family
Reaches 65
Does
Son gets part time job to support family
Gross income all income from whatever source minibus adjustments to income
Adjusted gross income
Affordable care act
Estate
Taxable
Adjusted gross income
Federal law that mandates increased preventive educational and community based health care services and that established the health insurance marketplace to make health coverage available to any uninsured individuals
Estate
Overinsurance
Tax deductible
ACA affordable care act or PPACA
ACA
A persons net worth
Estate
Adjusted gross income
Liquidity
Estate
Ins that exceeds in amount the actual value of the person or property insured or ins in a greater amount than the insured can afford
Tax deductible
Taxable
Estate
Overinsurance
Overinsurance
Qualified expense that may reduce amount of income subject to taxation
Tax deductible
Taxable
Estate
Tax deductible
Subject to taxation
Taxable
Beneficiary
Liquidation
Taxable
Alexander has policy with ex wife as beneficiary. What provision allows him to change beneficiary to new wife
Entire contract
Payment of claims
Change of beneficiary
Change of beneficiary
Which is false re change of beneficiaries provision
Policyowner has the right to change beneficiaries in any case
All policies that allow a death benefit must at least provide option of change of beneficiary provision
Policyowner cannot change beneficiaries if he/she has chosen to have irrevocable beneficiary unless policyowner has permission of irrevocable beneficiary
Policyowner has right to change beneficiaries in any case
When disabled dependent child reaches age limit for coverage how long does policyowner have to provide proof of dependency in order for dependent to remain covered under policy
30 days
31 days
15 days
31 days
Owner has health ins policy with wife listed as primary beneficiary. He would like o change primary beneficiary to his sister. Which of following is true.
Unless policy designated current beneficiary as irrevocable owner can make change at any time
Owner can only change primary beneficiary with current beneficiary’s consent
Beneficiary can only be changed if court deems the change acceptable
Policyowner will have to cancel this policy and apply for a new one with a new primary beneficiary
Unless the policy designated current beneficiary as irrevocable policyowner can make change at any time
Owner names his five children as primary beneficiaries and wife as contingent beneficiary. If owner and one of his children die who would rec policy benefits
The wife
Insured’s estate
Four primary beneficiaries
Four primary beneficiaries
Accurately describes change of beneficiary provision
Can only be changed in event of divorce death or severe psychiatric disorders
Requires consent of original beneficiary
Any policy that has death benefit must also have change of beneficiary provision
Any policy that has a death benefit must also have a change of beneficiary provision
Mode of premium payment is
Defined as frequency and amount of premium payment
Factor that determines amount of dividends in policy
Method used to compute cash surrender value of policy
Defined as frequency and amount of premiums payment
If insured changes premium payment mode from monthly to annually what happens to total premium
Increases
Decreases
Stays same
Decreases
Premium mod would result in highest annual cost for ins policy
Monthly
Quarterly
Semi annual
Monthly
If there were two primary beneficiaries named in a policy each would rec
50% if death benefit
Man works for company a. Woman works for company b. Spouses are covered by health plans through their respective companies that also cover the other spouse. If husband files a claim
Ins through his company is primary
Ins through his wife’s company is primary
Ins plans will split coverage evenly
Ins through his company is primary
Husband and wife are insured under group health ins plans at own places of employment and as dependents under their spouse’s coverage. If one of them incurs hospital expenses how will those expenses be paid
The benefits will be coordinated
Neither plan would pay
Each plan will pay equal shares
Benefits will be coordinated
Insured is covered under two group health plans under his own and his spouse’s. Suffered a loss of 2000.after insured paid total of 500 deductible and coinsurance primary insurer covered 1500 of medical expenses. What would be paid by secondary insurer
0
500
1000
500
Found only in group health plans; to avoid duplication of benefit payments and Overinsurance when someone is covered under multiple group health ins plans
Gender rule
Primary
COB provision
COB provision
Loss-amount covered by primary plan=
Amount covered by secondary plan
Insured has primary group health plan and excess plan each covering losses up to 10000. Insured suffered loss of 15000. Aside from any copayments or deductibles how much will excess plan pay
2000
5000
0
5000
Both parents name children as dependents under group policies then order of payment will usually be determined by the
Gender rule
Birthday rule
Secondary rule
Birthday rule
Which is true re occupational vs no occupational coverage
Only group disability income policies can be written on occupational basis
Disability ins can be written as occupational or non occupational
Individual disability policies never cover non occupational injuries
Disability insurance can be written as occupational or non occupational
Coverage provided by disability income policy that does not pay benefits for losses occurring as result of insured’s employment is called
Unemployment coverage
Occupational coverage
Workers comp
Non occupational coverage
Non occupational coverage
Which of the following statements about occupational vs non occupational coverage is true
Only group disability income policies can be written on an occupational basis
Disability ins can be writtten as occupational or non occupational
Disability ins can be written as occupational or nonoccupational
Insured has health ins that covers at work and at home. This was written on what basis
Occupational
Short term
Extended
Occupational
Employee insured under group health policy is injured in wreck while performing her duties for her employer. Results in long hospitalization period. Which is true
Group plan will not pay bc employee was injured at work
Group plan will pay
Group plan will pay portion of employee’s expenses
Grou plan will not pay bc employee was injured at work
Which is NOT true re partial disability
Benefit payments are typically 505 of total disability benefit
This isa form of ins that covers part time workers
Insured can still report to work and re benefits
Insured would qualify if he couldn’t perform some of his normal job duties
This is a form of ins that covers part time workers
What is the benefit that is based on the insure’d loss of earnings after recovery from a disability
Residenal
Recurrent
Partial
Income replacement
Residual
Disability income policies can provide coverage for a loss of income when returning to work
Part time
Weekly
Monthly
(…after recovering from disability)
Part time
